Could I have some advise please on offering a full & final settlement to clear the debt and end the IVA please. We have this month completed 4 years and now have 24 months left with a possibility of a further 12 months and my mom has offered to make a payment to end the IVA.
I have been informed by the IVA company to get my mom to email them detailing this but I want to make sure we word this correctly so, if accepted, the debt is cleared and IVA ends.
I'm also interested in how long does this process usually takes?
Any assistance would be greatly appreciated.
It usually take a couple of months, but some firms take longer, so it might be an idea to pop in a sentence along the lines of "Payments made after [date] will be deducted from the total amount offered here".
I am assuming that you had a 6 year IVA to start, so have 2 years and then 12 months in lieu of equity, by your wording. In which case an offer should be based on 36 payment at the current rate. This can be rounded down slightly to reflect the savings both IP and crditors will make in administration costs over the next three years.
Your IP will require evidence of the availability of this money (mum's bank statement) and probably photo ID from your mum (money laundering regulations). She will have to pay the IP direct from her own account, not via yours !
Most firms use this method : Market value x 85%, less outstanding mortgage / secured loan = equity. If the house is jointly owned and only one in the IVA divide the equity according to your own share.
If the figure you arrive at is well over the £5k trigger, assume the extra year. If it is close, it might be worth getting a proper valuation to prove the equity will not be triggered, to save a years worth of IVA payments.
CreditFix are now chasing us to do an annual review but we only had a creditors meeting in August as we needed to lower our payments due to our baby going into private nursery. The creditors agreed a payment of £100 per month (previously £402) but now a review is needed and I'm worried they will try to increase our payments again. But I guess I'm going to have to do this if the F&F offer takes a few months to process (if accepted).
Also, they are wanting us to use a third party system, but I've read in other peoples replies that we don't have to use this system and can provide photocopies. I've rang this company so many times recently but its a struggle to speak to someone - and when I do they say I HAVE to use the third party system.
I just needed to get out of this agreement.
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